The TM Gravis UK Listed Property Fund targets UK real estate investment trusts , which are aligned to benefit from four socio-economic mega trends. These include:

-- an ageing population involving investment in care homes and GP surgeries ;

-- digitalisation involving investment in firms that own logistic space, new commerce;

-- generation rent including investment in the build-to-rent sector such as Grainger ; and

-- urbanisation with investment in firms that lease, develop and own West End offices, for example Derwent London and Great Portland Estates.

The fund will also invest in REITs with assets that encompass more than one of these trends . A real estate investment trust is a company that owns, operates or finances income-producing real estate.

They delivered strong investment performance through mid-year 2026, outperforming the broad equity market by a sizable margin. This performance reversed their 2025 trend and showed that REITs can do well in an elevated and rising interest rate environment.  As the tech rally lost steam and REITs posted strong total returns, the divergence between broader equity and REIT valuation multiples started to converge. Further narrowing will likely drive continued REIT relative outperformance.

With private appraised property values continuing to lag the market, the public-private real estate valuation divergence continues to linger. As appraised values are marked to market, REITs are expected to enjoy relative outperformance. The REIT sector has experienced significant merger and acquisition activity. Privatizations have attracted media attention, but the most significant capital shifts have been strategic consolidations between public-listed REITs.

Norris stressed the importance of the digitalisation trend and highlighted that M&A activity is a key feature in the UK REIT sector, where a lot of deals taking place. This includes the latest Prologis bid for SEGRO which makes up a huge proportion of the UK REIT market.

“US-listed Prologis is the world’s largest logistics REIT and has been looking to acquire UK-listed SEGRO which owns one of the largest collection of data centres in the world. Prologis wants to expand its footprint and get access to super valuable data centres. However, the unsolicited bid was way below the company’s worth,” Norris told WealthBriefing in an interview.

“Prologis deserves credit for doing what a strategic buyer should do when it sees opportunity. But SEGRO is equally right to imply that no deal is better than a bad deal,” Norris said last week.

After the rejection of Prologis’s initial approach of an all-share indicative proposal worth £9.25 a share, SEGRO has countered with a value bridge to £11.47 of stand-alone value and potential strategic worth of £13.11. “The board has already rejected Prologis’s first approach as it believed the proposal failed to adequately compensate shareholders for long-term strategic value,” continued Norris.

Part of Prologis’ case is global diversification and execution. “Data centres are relatively small for both businesses today, but loom larger in the argument about future worth,” said Norris. SEGRO says data centre net rental income could exceed 30 per cent by 2035, up from 7 per cent in 2025. “Prologis’ execution capabilities may improve deliverability, but the trade-off for SEGRO shareholders is sharing potential upside across a much larger shareholder base,” he added.

“Prologis says engagement is the best route to maximise value, but SEGRO says, quite rightly in my view, not at this price,” Norris continued. “Its accusation is that Prologis is trying to buy it on the cheap. Both companies deserve credit for putting plans, valuations and ideas before shareholders early. This is how it should be. In many M&A situations, investors see too little detail, too late, or only after a board position has solidified.”

“If Prologis wants one of Europe’s best-located logistics and data-centre options, any bridge across the divide is likely to lie somewhere between its initial indicative proposal and SEGRO’s assessment of worth,” Norris said.

Top holdings in the fund include SEGRO, Grainger, London MetricProperty, Picton Property Income, and Schroders REIT. Alongside Schroders REIT, LondonMetric Property are working towards a firm takeover bid for Picton Property Income.

Elsewhere in the fund, which has been outperforming the UK real estate index, a range of companies reported strong operating results, Norris said.

Grainger , for instance, owns more than 11,000 rental homes across the UK, and achieved like-for-like rental growth of 3.1 per cent for the six months to March, whilst occupancy remains high at 96 per cent. “Housing is a needs-based asset class. Everyone will always need a place to live. Grainger's rental income is underpinned by wage inflation, with a diversified, growing customer base and targeted asset clusters in the UK's biggest cities,” Helen Gordon, CEO of Grainger, said.

Overall, Norris is optimistic about the fund’s performance. “Investors should look to the attractive, growing dividend yield and the potential for further upside, with the fund continuing to invest in defensive, domestic and dependable assets,” Norris said. “While growth concerns continue to impact capital markets, the four socio-economic mega trends – ageing population, digitalisation, generation rent, and urbanisation – are set to gain.”